Update For Changes To Excess Concessional Contribution Cap
Since 1 July 2013, individuals who exceeded their concessional contributions cap have had, and will have, the excess amount included in their assessable income, and taxed at their marginal tax rate, plus an interest charge.
The individual may choose to release up to 85% of their excess contributions from their super fund to the ATO by completing an election form.
In such a case, the ATO will issue the nominated super fund with an excess concessional contributions release authority.
The fund must pay the amount to be released directly to the ATO (a unique payment reference number will be provided with each release authority), as well as return the release authority statement within 7 days (the statement can be sent to the ATO via mail (to the ATO at Locked Bag 1936, Albury, NSW 1936) or by fax to 1300 139 024).
Although paid to the ATO, the released amount is to be treated as a non-assessable, non-exempt benefit payment to the member.
The ATO did not expect to start issuing individual income tax notices of assessment containing excess concessional contribution amounts, and the associated election forms, before November 2014.
As a result, associated release authorities and statements are unlikely to issue to super funds before December.
